$6.95 (U.S.), $8.95 (CAN.), £5.50 (U.K.), 8.95 (EUROPE), Y2,500 (JAPAN) aw a zW MA!' THE INTERNATIONAL NEWSWEEKLY OF MUSIC, VIDEO, AND HOME ENTERTAINMENT, JUNE 22, 2002 BMG's Zomba Buy Sets Calder Free As BMG Absorbs Mandatory Deal, Industry Ponders Zomba Co- Founder's Plans BY GORDON MASSON Calder for more than 30 years, corn- ness," one former Calder associate LONDON-While the music industry ments, "I've always found it ex- notes. "Whatever he does next, I'm comes to terms with Zomba chair - tremely difficult to think of Clive not sure it'll be a phenomenal success." man/CEO Clive Calder's decision to sell doing anything. Having known him Calder was unavailable for com- out to BMG and the resulting mam- since the 1960s and having worked ment, but in a statement he said: moth payout, the most intrigu- "With its outstanding execu- ing part of the news for many tives and creative talent, Zom- lies in what the reclusive South SMG ba should add a lot of value to African plans to do next. With a Bertelsmann's music division, reputed $2.8 billion check soon BMG. While the exercise of heading his way from Bertelsmann's with him all those years, I can't this option will undoubtedly be a German headquarters in Gütersloh, believe he'll do nothing. But I don't surprise to many in the music Calder is not exactly in need of a job. have any idea what would be in his industry, this is a natural culmina- But those who know the man do not mind -I guess that's going to exer- tion of many years of close business believe he is about to simply retire. cise an awful lot of people." ties and a complex series of agree- Former Zomba U.K. group chair- "He's a workaholic who thinks, ments negotiated 12 years ago." man John Fruin, who has known eats, sleeps, and breathes the busi- (Continued on page 78) BY JILL KIPNIS LOS ANGELES -Singer Anthony Kiedis experienced the full range of Skepticism Over Music Subscriptions a relationship's emotions while crafting the Red Hot Chili Peppers' lat- est Warner Bros. album By the Way, due in stores July 9. He took inspi- Net Services Plagued By Uncertainty Is Satellite Radio A Safer Bet? ration from love's immeasurable joys and also from its knotty pitfalls, and in the process, came together with his bandmates to create a com- BY MATTHEW BENZ BY MATTHEW BENZ pelling follow -up to the group's best -selling album Califomication. NEW YORK- Subscriptions are creeping into music - NEW YORK-Can XM Satellite Radio and Sirius Kiedis says that it was the "energy of relationships and being in love whether in the form of Internet music services from Satellite Radio get people to subscribe to some- (Continued on page 77) MusicNet, Pressplay, MusicMatch, and others or radio thing that has long been free? offerings from XM Clear Channel Com- Satellite Radio and munications, General Sirius Satellite Radio Motors, and Hughes Vivendi Universal: What Now? (see story, at right). Electronics are some of BY BRIAN GARRITY complexities of successfully housing Many in the music the companies that NEW YORK- Universal Music the likes of music, telecom, and industry remain skep- think so. They are Group's (UMG) parent conglomerate water-util ty operations under the tical that the sub- among the main finan- Vivendi Universal (W) appears to be same roof Vivendi has announced scription -both as a cial backers of XM, buckling under the VIVEN plans to begin selling off business model and a which to date has strain of its own collec- UNIVÉ IRS/1L non -core and under- consumer proposi- raised approximately tive weight. Saddled by performing assets-the tion -can work over $1.7 billion. a mountain of debt-an $18 billion first step in what some predict will the long term and on Yet music -industry hangover from the two -year acquisi- ultimately be a large -scale break - a large scale in music. observers question tion binge that formed the compa- up-or at the very least, decentraliza- (Continued on page 80) (Continued on page 80) ny -and hampered by the inherent (Continued on page 79) CMT Flameworthy Awards: Page 8 IFPI Piracy Conference; Univision Buys HBC: Page .9 Recalling Dee Dee Ramone: Page 63 HEATSEEKERS T T LJ I Republic/Universal's Flaw Sees C R E A T O R O F A L. L P U L L M A N B O N D STM No. 1 `Through The Eyes' THE PULLMAN GROUP,® LLC NICKOLAS ASHFORD & VALERIE SIMPSON have created some of the most memorable SEE PAGE 69 is pleased to celebrate songs of the past 5 decades including: the third anniversary of the "Ain't Nothin' Like the Real Thing," $6.95ÚS $8.95CAN ASHFORD & "I'm Every Woman," Ain't No Mountain SIMPSON High Enough," 'Reach Out and Touch 2 5> Pullman Bond"' (Somebody's Hand)," "Solid," "You're All I & their induction into the 2002 Need to Get By," "Your Precious Love," 'Been Found," 'Stay Free," "Let's Go Get Oav!ßd P man. Songwriters Hall of Fame Stoned," and 'The Is a Winner in You." Founder. 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But Wesley admits an equally damning truth about funk assault mounted in the late '50s and '60s by James Brown the mutually exploitative dance into which Brown and his troupe Editor in Chief: TIMOTHY WHITE and either the Famous Flames or the JBs-and later reinforced were willingly locked: "The fact is, [Brown] never did anything to EDITORIAL Managing Editor: MICHAEL ELLIS by a rear guard of Parliament /Funkadelic and Booty's Rubber anyone who didn't make him or herself available to the abuse by try- Bureau Chiefs: Leila Cobo (Latin, Miami), Bill Holland (Washington, D.C.), Melinda Newman (L.A.), Phyllis Stark (Nashville) Band -the wisest course was generally to get down. And stay down. ing to get something free or cheap from him." Senior Editors: Ed Christman (Retail), Larry Flick (Talent), Wayne Hoffman (News), Jr. recalls in his Just as Wesley makes sure the reader sees his own flaws as a $350 -a- Chuck Taylor (Features), Ray Waddell (Touring, Nashville) Legendary trombonist Fred Wesley forthcoming Senior Writer: Chris Morris (L.A.) memoir, Hit Me, Fred: Recollections ofa Side Man (Duke Universi- week "yes man" who rose (after a short-lived exit and reconciliation) to Special Correspondent /Music Publishing Editor: Jim Bessman Art Director: Jeff Nisbet ty Press, due in September) his backstage rite of initiation in 1967 as become music director for the often -forbidding Godfather of Soul, he Associate Editors: Jill Kipnis (HomeVideo, L.A.), Brian Garrity (Merchants & Marketing /Music & Money), an infantryman in Brown's funk fusiliers: "Mr.